Hyundai Motor Group's establishment of a steel production line in the U.S. is directly linked to enhancing local supply chain competitiveness. This initiative will enable the company to procure materials for both automobile production and the mass manufacturing of the Atlas humanoid robot at lower costs.
According to industry sources, the Hyundai Steel-Posco Louisiana Steel Mill (HPLS) in Donaldsonville, Louisiana, is set to achieve an annual production capacity of 2.7 million tons by 2029. This facility will primarily supply 1.8 million tons of automotive steel and 900,000 tons of general steel to Hyundai Motor Group, which has entered the U.S. market.
The development of the Louisiana steel mill is crucial for Hyundai Motor Group's cost competitiveness in manufacturing. Previously, sourcing steel in the U.S. required importing from neighboring countries or purchasing from local suppliers, which significantly increased costs. According to the American Iron and Steel Institute, steel accounts for approximately 54% of a vehicle's weight, with an estimated 900 kilograms of steel used per vehicle.
By sourcing steel locally through its affiliates, Hyundai Motor Group expects to reduce logistics and supply chain costs, thereby enhancing its mass production capabilities. The company is also considering increasing the annual production capacity of its Hyundai Motor Group Metaplant America (HMGMA) in Georgia from 500,000 to between 700,000 and 800,000 vehicles by 2028.
There is also potential for utilizing locally produced steel in the manufacturing process of the Atlas robot by Boston Dynamics. On September 4, Hyundai Motor Group Executive Chair Chung Eui-sun expressed his intention to apply the steel produced at HPLS to the Atlas robot, stating, "I believe it should definitely be applied."
The establishment of a local production system is driven by the goal of popularizing the Atlas robot and improving profitability. The group has begun expanding its robotics business with the opening of the U.S. Robot Metaplant Application Center (RMAC) and has confirmed the site for Boston Dynamics' robot production facility, aiming to start production in 2028 with a capacity of 30,000 units annually. Additionally, Hyundai Mobis plans to establish a system in the U.S. capable of producing 350,000 actuators, which account for about 60% of the material costs for the Atlas robot.
If plans proceed as intended, Hyundai Motor Group will secure steel materials locally, with Hyundai Mobis supplying key components, and Boston Dynamics will establish a structure for mass production of the Atlas robot.
The mass production system is expected to lead to cost reductions. Samsung Securities has analyzed that if the production volume of the Atlas robot expands to 30,000 units annually, the production cost per unit could drop from $130,000 to $35,000, which is comparable to the starting price of the 2026 Hyundai Santa Fe SE, listed at $35,050.
Hyundai Motor Group anticipates that the Louisiana steel mill will significantly enhance its production competitiveness in the U.S. A company representative stated, "Employment and parts supply will become smoother, and there will be cost-saving effects compared to sourcing from external suppliers."
* This article has been translated by AI.
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